Student Loan News, Updates and Blog Posts

Most people who go to grad school fall into one of two categories; professional students or professionals advancing their career. For some, four years of college can be grueling enough, others love going back to campus every fall. If you fall into the first category and thought you were done with school forever you might want to think again. In today’s world even people who never imagined touching another textbook are being forced back into the classroom.

Whether you are an intellectual junkie or a career ladder climber, getting funding for your graduate education has never been easier.  Graduate students have three great student loan options and many people take advantage of all of them. The Graduate Stafford Loan is the first option. This loan comes with a low fixed interest rate and there is no credit check to apply. With the Stafford loan graduate students can borrow up to $138,500 for school. This is way more than what undergrads can borrow with the Stafford loan. The second option in the Graduate PLUS Loan. This is also a federal loan, but it is not based on need and it comes with a flexible repayment plan. Unlike other federal loans the PLUS loan is based on credit so a clean credit history is helpful when applying. Finally, graduate students can always apply for flexible private student loans to help cover the costs of books and living expenses.

If you plan to be in school for a long time there are loan options for you. If you are trying to get out of school as quickly as possible there are loan options for you. If your employer is making you go to school there are loan options for you. And, if you have the choice between school or unemployment there are loan options for you.

Debt relief could be on the horizon for recent law school graduates. The American Bar Association has proposed extending debt relief to law school graduates who have not been able to find a job because of the recession. While most unemployed graduates can already defer their federal loans or qualify for income based repayment, the ABA’s proposition suggests letting graduates convert their private loans into federal loans so that they can receive the same benefits.

Many law school students graduate with $50,000 to $100,000 worth of debt. Most of this debt comes from a combination of federal and private loans. Private loans can rarely be deferred because of unemployment or economic hardship like federal loans can. The ABA is proposing allowing students to borrow additional money from the government to pay off their private loans. This would leave them with an additional federal loan that they could defer for up to three years or roll into their income based repayment plan.

This plan is in infancy stages and no one knows exactly how it would be accomplished. However, if passed it would definitely be a huge help to many law school graduates who might otherwise default on their private loans and hurt their credit forever.

If you are considering going to grad school one major factor that is probably holding you back is the cost. Between rent, utilities and car payments your budget is probably already pretty tight. You are probably also hesitant to pile more debt on top of your student loans. Before you apply for alternative student loans or the Grad PLUS loan one thing you should do is talk to your employer.

May employers offer tuition reimbursement benefits.  This means that they will pay for you to take classes as long as it is relevant to your field and could help you in your job. Although they many not pay for en entire graduate degree they may pay for one class at a time or reimburse you for up to $2500 a year.

A graduate degree not only benefits you, but it also benefits your employer. For this reason more and more employers are offering these types of benefits. Tuition reimbursement is a perk that helps companies retain employee talent. With a graduate degree you will be able to bring new technologies and industry trends into your career and take on additional responsibilities. So before you take the grad school plunge make sure you research what your employer has to offer you.

A graduate or professional student attending an eligible foreign institution will only be able to use the multi-year feature of the PLUS MPN if the school has been expressly approved by the Department to have its student and parent borrowers do so.

No eligible foreign institution is approved for this purpose at the current time. As a result, until the Department approves foreign institutions for this purpose, a graduate or professional student PLUS borrower attending an eligible foreign institution will need to sign a new PLUS MPN for each new loan period.  So basically, you need to apply and submit a new MPN each year.

The LSAT, which is a half-day, standardized test administered four times each year is a test used as part of the admissions process to get into law school, but when should you take your LSAT?

You should take your test as early as possible before law school deadlines.  Many schools request that applicants take their exam by December for admission in the following fall’s entering class.

LSAT scores are valid for five years.

So you are a senior and college and you have decided that you are definitely going to go to grad school next year. The job market is tough and you figure with a little bit more education you can get into your field of choice and increase your earning potential. You know that between the Graduate Stafford loan, Graduate PlUS loan and alternative student loans you will be able to pay for tuition, books and any other living expenses. Now comes the hard part; deciding which school and program to enroll in.

The first decision you need to make is whether you want to pursue a traditional graduate degree or an online degree. If an online degree is something the piques your interest Edvisors.com can help you learn more about this possibility and connect you with the best online schools and programs. If you decide to go the more traditional route GraduateCenter.com can help you explore your options and search for the perfect school.

Another great resource is the school you are attending now for your undergraduate degree. Many schools host graduate school fairs or graduate school information sessions. Your school’s career services office can also help you greatly in your decision.

Choosing a graduate school program is an extremely important decision and it should not be taken lightly. When making your decision you should consider the cost of attendance, cost of living, length of the program, whether or not you will be able to work while you are in school, and admission requirements. Remember that this decision will greatly impact your future career so make sure you choose a program you are going to enjoy.

Below is a list of the average MBA starting salaries at the top business schools according to Admissions Consultants.  The University of Pennsylvania (Wharton) has the highest average median total pay package with Columbia University a very close second.

The day you can hoist your graduate degree overhead will be a proud day no doubt, but then the reality sets in.  How much did I borrow for this piece of paper exactly?

The truth is most students have no idea how much they borrowed.    Grants, federal loans, private loans, work-study, and scholarships fall under one giant umbrella to most.  Their philosophy is simple, why worry about it today when I can worry about it tomorrow?

Well, when tomorrow comes knocking it will serve you well to have a game plan.  Today we shall focus on federal loan deferment. Keep in mind that deferment is not a means to an end, but rather, a way to stay afloat if you are having trouble making your monthly loan payment.

There are two common deferment types that are utilized.  The first one is the Economic hardship deferment.  In order to qualify for this deferment type you must fall into one of the following categories:

• You are receiving payment under a federal or state public assistance program, such as Temporary Assistance for Needy Families (TANF), Supplemental Security Income (SSI), Food Stamps, or state general public assistance.
• You are serving as a Peace Corps volunteer.
• You are working full-time and your total monthly gross income from employment must be less than or equal to the larger of (A) the monthly minimum wage rate or (B) 150% of the Poverty Guideline amount for your family size and state.

The second deferment type is loan forbearance which anyone can basically receive.   The big distinction between the two deferment types is that while in forbearance interest accrues on the principal and any capitalized interest. Your debt will continually increase while in deferment making your repayment period longer.  When you are in an economic hardship deferment no interest accrues on your subsidized loan portion.

You have 36 months of federal loan deferment entitlement regardless of which deferment you take advantage of and must reapply every 12 months if you wish to continue in your deferment state.

Below you will find two sample Graduate Stafford loan Award Breakdowns

Sample 1

Student’s Cost of Attendance is $19,000

EFC is $13,000

Student is eligible for:

$6,000 in subsidized funding, (COA-EFC)

$2,500 in unsubsidized funding

$10,500 in additional unsubsidized funding (same loan as the unsubsidized)

$19,000 total

Sample 2

Student’s Cost of Attendance is $23,000

EFC is $13,000

Student is eligible for:

$8,500 in subsidized funding, (COA-EFC  maxes out at $8500)

$12,500 in additional unsubsidized funding

$20,500 subtotal Stafford Loan Eligibility

Additionally the school may suggest a Grad Plus loan for the $2,500 shortfall.

If you’re in need of funds for grad school chances are you’ve already stumbled upon the passage that states that Grad students are eligible for up to $20,500 in Grad Stafford loans, but what you may not know is how much of that $20,500 you can actually get.

The answer is actually pretty simple.  If the cost of attendance minus all other financial aid is $20,500 or greater you may get the full amount, unless you have already reached the annual or aggregate maximum amounts.  $20,500 is the yearly allotment while $138,500 is the aggregate allotment for Grad students.

Of course the point is to not have to tap into the full $20,500 if at all possible. One way students take thousands of dollars off their tuition every year is by earning/winning scholarships for college.  Two great scholarship resources include studentscholarshipsearch.com and scholarshippoints.com.

Scholarshipsearch has over 9 billion dollars worth of scholarships available to qualified students.   Scholarshippoints is a site that gives away scholarships every month to registered members.  You complete activities to earn points which you then use to enter a monthly scholarship drawing ranging from $500 to $10,000.    Monthly winner are selected at random.